High yield dividend stocks are in favor with equity investors right now, since a stock with a guaranteed payout of dividends helps reduce the risk of your portfolio. But finding a stock that pays a plush yield is only part of the dividend stock investing equation – finding stocks that consistently boost their dividends is equally important.
You don’t want to jump into a dividend stock in pursuit of a high yield only to find that company keeps its payouts flat for the next decade. Here are three big-name dividend stocks that just announced they are boosting payouts:
Dividend Stock – Procter & Gamble (PG)
Call it sudsing action: For the 54th straight quarter, high yield dividend stock Procter & Gamble (PG) has boosted its payout. On Tuesday, P&G increased its quarterly dividend by 9.5%, to 48 cents a share. The annual yield now stands at 3.1%. This dividend increase will apply to the payment Aug. 16 to shareholders of record on July 23
For its fiscal third quarter, diluted Procter & Gamble earnings for continuing operations rose 6% on a 7% increase in net sales. Core earnings per share were 89,cents up 10 percent. PG has a P/E of 16.68
The Cincinnati-based owner of a universe of brands is doing well in emerging markets. Earlier this month, PG closed its acquisition for about $402 million of the Sara Lee (SLE) Ambi Pur brand – a line of air freshener products marketed in Europe and the U.K. The transaction, however, will not affect results for fiscal 2010, which ended June 30. In even more product news, PG has introduced a multigrain version of Pringles, a snack that is 40 years old. (Can you believe it?)
Dividend Stock – PPG Industries (PPG)
PPG Industries (PPG) on Thursday increased its quarterly dividend by a penny, to 55 cents a share, payable Sept. 10 to shareholders of record Aug. 10. The Pittsburgh-based paint, coatings and chemical company says it has paid uninterrupted dividends since 1899. The dividend increase gives PPG a yield of about 3.5%.
The dividend announcement came the same day it reported that PPG second-quarter profit surged 86% as sales rose 10%. EPS bested analysts’ predictions, jumping to $1.57 from 91 cents a year earlier.
Earnings for its sales-leader performance-coatings business rose 20% on higher selling prices and lower costs. Sales for the industrial-coatings unit increased 27%.
Though demand remains below pre-recession levels, the paint company still managed to paint its numbers black instead of red in recent quarters.
Dividend Stock – Cummins – (CMI)
Engine maker Cummins (CMI) increased its dividend dramatically by 50%, bringing CMI stock an annual dividend yield of 1.4%.
International performance, cost cuts and productivity increases throughout the company helped push net income to 75 cents a share in the first quarter from 4 cents a year earlier.
Sales rose 2%, to $2.48 billion from $21.44 billion. The Columbus, Ind., company said growth in the company’s components and distribution segments offset declines in its engine and power generation segments.
It earlier brightened its guidance to say it will earn an EBIT margin of 10% of sales of $12 billion for all of 2010.
As of this writing, Wayne Faulkner did not own a position in any of the stocks named here
The One Top ETF to Own Now – Louis Navellier’s new profit guide reveals the hottest ETF to buy now, plus details his breakthrough new strategy designed to help you lock in short-term gains from ETFs in sectors just heating up, and then when those sectors are on fire, grab money-doubling profits from the fastest-moving individual stocks — download your FREE copy of this report here.
